AKK plan shows EUR 20.25bn gross issuance next year

Budapest, December 16 (MTI) – Hungary’s foreign debt manager AKK plans gross issuance of 6,389 billion forints (EUR 20.25bn) next year, a debt management outlook released on Wednesday shows.

AKK noted that 91 percent of the planned issuance would be in domestic currency. It also plans the issue of the equivalent of 1 billion euros of international bonds and a further 750,000 euros of domestic Residency Bonds and Premium Euro Hungarian Government Bonds.

Net issuance is set to reach 1,008 billion forints as net domestic issuance comes to 1,979 billion forints and the government repays net 971 billion forints of forex debt.

AKK reiterated its three main objectives in the report: to support the reduction of state debt, to increase the retail financing of the debt and to “significantly reduce” the share of FX debt.

AKK lowered its benchmark for the share of FX debt from 40 percent this year to “below 35 percent and declining” for 2016. It added that FX obligations after swaps should be 100 percent in euros, allowing for a 5 percent deviation.

Source: http://mtva.hu/hu/hungary-matters